AMC Entertainment (AMC) stock declined on Thursday as a weak broader market backdrop and selling after a sharp rally put pressure on the stock. The stock surged 15.06% on Monday to $3.26 from $2.92, but AMC stock has declined since, despite a small bump on Wednesday.
The Nasdaq is down 0.03% while the S&P 500 has shed 0.19% and Communication Services is lower by 0.8%.
• AMC Entertainment stock is showing notable weakness. Why is AMC stock dropping?
The broader market faces pressure today as U.S. bonds resumed their sell-off on Thursday. Investors continue to believe the Federal Reserve will raise interest rates further to address inflation and strong economic activity. The yield on the 10-year U.S. Treasury note rose for a fourth consecutive session to 5.33%, reaching its highest level since early 2002, according to Trading Economics.
New Birthday Party Program
On Thursday, AMC launched an all-new birthday party booking experience at approximately 300 locations, offering up to 25% savings on private theater rentals. The program includes digital invitations through Evite.
Technical Analysis
Even after Thursday’s drop, AMC is still trading above its key moving averages, which keeps the bigger-picture trend constructive: it’s 1.7% above the 20-day SMA ($2.74) and 5.5% above the 50-day SMA ($2.64). The stock is also 22.5% above the 100-day SMA ($2.28) and 51.6% above the 200-day SMA ($1.84), showing the longer-term recovery remains intact despite the day-to-day volatility.
Momentum is best described as "resetting," not breaking: RSI is 51.27, which is neutral and suggests the stock isn’t stretched to the upside or downside right now.
The trend backdrop still leans bullish, with the 20-day SMA above the 50-day SMA and a Golden Cross (50-day SMA above the 200-day SMA) that occurred in July. From a structure standpoint, AMC is also below its 52-week high of $3.40 (set in September) but well above the 52-week low of 93 cents (set in March), reinforcing that the stock has been in a higher-range regime versus earlier in the year.
- Key Resistance: $2.81
- Key Support: $2.64
AMC Stock Price Activity: AMC Entertainment shares were down 8.50% at $2.75 at the time of publication on Thursday, according to market data.
